Capitalism is an economic system that emerged in the early modern period and is based on private ownership. Individuals and corporations own the means of production, which they operate for profit. The accumulation of capital, competition, private property, and wage labor are salient features of capitalist economies. Rodney argues that capitalism was the driving force behind European imperialism and colonialism, with Europeans exploiting African resources and labor for maximum profit. Capitalism resulted in the rapid development of Europe and the underdevelopment of Africa.

Colonialism is a practice or policy of domination involving the subjugation of one people for the economic benefit of another. European countries colonized much of Africa. The French, for example, controlled a federation of eight West African territories from 1895 to 1960. (French West Africa consisted of modern Mauritania, Senegal, Mali, Guinea, Côte d’Ivoire, Burkina Faso, Benin, and Niger.) France also controlled swathes of North Africa, colonizing Algeria in 1830 and turning Tunisia and Morocco into French protectorates in the late-19th century. Colonialism promoted development by allowing Europeans to exploit African labor and raw materials for profit and by enabling them to defend their interests against rival capitalists. It also allowed Europeans to impose their culture on Africans.